Aspiring Davao Exporters May Learn a Lesson or Two from Auditing Firms
Much like the rest of the Philippines, Davao Region’s economy heavily relies on the sector of agriculture. From it comes the biggest chunk of Davao’s income, including the lucrative export industry.
Davao is known to be durian capital of the Philippines. It exports these delicious fruits elsewhere. But aside from durian, other notable export products include abaca, banana and banana products, cacao, copra, lumber and plywood.
In Davao City alone, 43% of its total land coverage is dedicated to vegetation and agriculture.
The only question now is:
“Is exporting part of your considerations for a business?”
If you answered yes then you must know that handling one company in an overly expansive and volatile industry such as exporting is surely difficult. There are known ways to lessening stressors while doing so and one of those is by seeking the help of professional auditing firms in Davao City.
But first, you might want to take a look at these figures to imagine how big the industry is and where will you situate yourself on the greater scale?
Davao Export Industry
- Exports account to almost 1.2 million US dollars back in 2010 and growth rate is more than 10 percent annually.
- There is an inclusive group for local exporters in the region called Philippine Exporters Confederation Inc. Region 11
- It will be holding a Mindanao Exporter Congress this coming July 29 to 31, 2013 at the SMX Convention Center, SM City Lanang Premier in Davao City
- Davao exporters have the MOA on the One-stop Export Documentation Center (OSEDC) to lessen its members processing steps. It features different agencies of the government
- The exporting business is greater than the import bringing it to a steady balance
With all the facts and figures, did you accumulate any idea to venture into the exporting business now? At large, this industry is being monitored by several government agencies and mandatory laws; next you’ll see a primer on some of them.
What the Law States
- Every private entity shall be audited by an independent auditing institution as mandated by the Commission on Audit
- Exporters dealing with agricultural and marine products undergo accreditations and inspections from Department of Agriculture and Bureau of Fisheries and Aquatic Resources
- Every business, across every industry must secure SEC (Securities and Exchange Commission) registrations, including BIR.
- No exported products can travel outside without undergoing inspection from the Bureau of Customs
Now that you know where you stand and what to expect from the public sector that monitors exporting activities, go back on your end. How do you improve your exporting experience by tapping into your friendly Davao City auditing firm?
How can Auditing Firms in Davao City Help
The new question now is: “Can they really help an aspiring exporter? “
Of course yes. Here are some of the reasons how.
- The process towards fully completing any exporting procedure from one country to another is long and tedious. The role of the auditing firm is to secure that there will be no gaps and inconsistencies in financial statements involved throughout the process.
- An auditing firm can provide you with timely information on the countries you intend to export products to since no two countries are alike. They can do this through a lengthy analysis which consolidates different customs laws in and around that country (inclusive of allowed and not allowed products, tax exemptions and even incentives among many others).
- Lessen your headache over regulatory compliance in your base country and the country that will be receiving your goods. (e.g. written documents such as memorandum of agreements)
- Since the liability on the exporter is high, having correct external audits may strengthen your capability to withstand any legal suits that may arise from the situation. Auditors may provide investigators with detailed and comprehensive paper trails of every transaction you had.
- They can also provide you a study on the options for market entry. Exporting is a very old industry, and the level of complexity that comes along with its totality increases by the minute. By having trusted auditors you can also opt for them to give you strong opinion on which country or market will most likely need the products you are thinking of exporting. The level of penetration needed and the manner through which it will be performed in any market is something that analysts would certainly know.
- They can aid in making you save more money in the process, knowing that the business of exporting is a lucrative mistress. It takes up a lot of money on packaging, procurement of products, shipping and even promoting. Even a thousand peso saved can already mean a lot. They do this by finding errors, correcting them and giving you plans to properly handle the money you have in every transaction. Their aim is zero waste of money at all.
Export audit is only a small part of conducting an over-all exporting plan but without it, you may be endangering your successful breakthrough entry to the exporting industry. Remember, with proper help from the right authorities, all you need to do is focus on important business functions while your auditor can do the rest.